10.
4.5 E-mail Marketing <ul><li>Define the reach </li></ul><ul><ul><li>The span of people you would like to target, including geographic locations and demographic profiles </li></ul></ul><ul><li>Determine the level of personalization </li></ul><ul><ul><li>Personalized direct e-mail targets consumers with specific information and offers by using customer names, offering the right products at the right time and sending promotions </li></ul></ul><ul><li>Response rate </li></ul><ul><ul><li>Shows campaign success or failure by measuring the percentage of responses generated from the target market </li></ul></ul>

13.
4.7 E-business Advertising <ul><li>Traditional: television, movies, newspapers and magazines </li></ul><ul><li>Prime-time television slots most expensive times to air commercials </li></ul><ul><ul><li>( monster.com advertisement ) </li></ul></ul><ul><li>Establish and continually strengthen branding </li></ul><ul><ul><li>Brand is a symbol or name that distinguishes a company and its products or services from its competitors and should be unique, recognizable and easy to remember </li></ul></ul><ul><li>Publicize URL on direct mailings and business cards </li></ul><ul><li>Online advertising: place links on other Web sites, register with search engines and directories </li></ul>

14.
4.7.1 Banner Advertising <ul><li>Banner ads </li></ul><ul><ul><li>Located on Web pages, act like small billboards, usually contain graphics and an advertising message </li></ul></ul><ul><ul><li>Benefits include: </li></ul></ul><ul><ul><ul><li>Increased brand recognition, exposure and possible revenue </li></ul></ul></ul><ul><ul><li>Created in different sizes and placed in various positions on a Web site </li></ul></ul><ul><ul><li>Banner advertisements are losing their effectiveness </li></ul></ul><ul><li>Strong branding </li></ul><ul><ul><li>Placing logo on banners, enhancing brand recognition </li></ul></ul>

15.
4.7.1 Banner Advertising <ul><li>Inventive color schemes and movement </li></ul><ul><ul><li>Flashing, scrolling text, pop-up boxes and color changes </li></ul></ul><ul><ul><ul><li>Pop-up box is a square screen containing an advertisement that appears separate from the screen the user is viewing, pops up randomly or as a result of user actions </li></ul></ul></ul><ul><li>Determine the best position on sites for a banner </li></ul><ul><ul><li>Web sites cluttered with ads annoy visitors </li></ul></ul><ul><li>Space can be more expensive during high traffic </li></ul><ul><li>Exchanging banners with another site </li></ul><ul><li>Adbility and BannerTips </li></ul>

16.
4.7.2 Buying and Selling Advertising on the Web <ul><li>Buy advertising space on sites that receive a large number of hits and target a similar market </li></ul><ul><li>Selling ad space on a site provides additional income </li></ul><ul><li>Monthly charges for online advertising rarely used today </li></ul><ul><li>CPM ( cost per thousand) </li></ul><ul><ul><li>A designated fee for every one thousand people who view the site on which your advertisement is located </li></ul></ul>

17.
4.7.2 Buying and Selling Advertising on the Web <ul><li>Selling advertising space </li></ul><ul><ul><li>Provide appropriate contact information on your Web site </li></ul></ul><ul><ul><li>Register with organizations that will sell your space for you </li></ul></ul><ul><ul><ul><li>These companies typically charge a percentage of the revenue you receive from the advertisements placed on your site: ValueClick , DoubleClick , AdSmart and LinkExchange </li></ul></ul></ul>

19.
4.8 Webcasting and Interactive Advertising <ul><li>Bursting </li></ul><ul><ul><li>There is a substantial build up of content at the receiving end, causing a video to appear smoother </li></ul></ul><ul><ul><ul><li>Burst.com </li></ul></ul></ul><ul><li>Interactive advertising </li></ul><ul><ul><li>Involves using a combination of rich media (such as audio, video, images and animations) and traditional advertising forms (such as print, television and radio advertisements) to execute an advertising campaign </li></ul></ul><ul><ul><li>Involve consumers in the advertising process </li></ul></ul><ul><ul><ul><li>Nike </li></ul></ul></ul><ul><ul><ul><li>WebRIOT, a game show on MTV </li></ul></ul></ul><ul><ul><ul><li>H2O Design and Lot21 </li></ul></ul></ul>

20.
4.9 E-business Public Relations <ul><li>Public relations (PR) </li></ul><ul><ul><li>Keeps customers and company current on latest information about products, services and internal and external issues such as company promotions and consumer reactions </li></ul></ul><ul><li>Methods </li></ul><ul><ul><li>Chat sessions </li></ul></ul><ul><ul><li>Bulletin board </li></ul></ul><ul><ul><li>Special events or functions on Web site </li></ul></ul><ul><ul><li>Trade shows and exhibitions </li></ul></ul><ul><ul><li>Press releases (can be delivered over Web, PR Web ) </li></ul></ul><ul><ul><ul><li>Printing and distribution, MediaMap </li></ul></ul></ul><ul><ul><ul><li>Add link that connects to all press releases </li></ul></ul></ul><ul><ul><li>Video clips </li></ul></ul><ul><ul><ul><li>PR Newswire and Business Wire </li></ul></ul></ul>

21.
4.9 E-business Public Relations <ul><li>Crisis management </li></ul><ul><ul><li>Another responsibility of PR, is conducted in response to problems the company is having </li></ul></ul>

22.
4.10 Customer Relationship Management <ul><li>Customer Relationship Management (CRM) system </li></ul><ul><ul><li>The aggregate of a company’s customer service solutions </li></ul></ul><ul><ul><li>Can include </li></ul></ul><ul><ul><ul><li>Call handling (the maintenance of out-bound and in-bound calls from customers and service representatives) </li></ul></ul></ul><ul><ul><ul><li>Sales tracking (the tracing and recording of all sales made) </li></ul></ul></ul><ul><ul><ul><li>Transaction support (the technology and personnel used for conducting transactions) as well as other functions </li></ul></ul></ul><ul><li>Tools used to improve solutions include log-file analysis, cookies and the use of infomediaries </li></ul><ul><ul><li>Companies that collect profiles on customers in exchange for the promise of more personalized Web experiences </li></ul></ul>

23.
4.10.1 Keeping Track of Your Visitors <ul><li>Log file analysis </li></ul><ul><ul><li>Log files consist of data generated by site visits, including each visitor’s location, IP address, time of visit, frequency of visits and many other indicators </li></ul></ul><ul><li>Cookie </li></ul><ul><ul><li>Technology that keeps a profile on each visitor </li></ul></ul><ul><li>Data gathered used to personalize each visitor’s experience, find trends in customer use and demonstrate Web site effectiveness </li></ul>

24.
4.10.1 Feature: WebTrends <ul><li>WebTrends provides solutions for tracking visitors </li></ul><ul><ul><li>Offers products allowing you to profile site visitors and measure the effectiveness of each of your Web pages </li></ul></ul><ul><li>After downloading a WebTrends product, the user must specify the source of the log files, types of reports and location where data is stored </li></ul><ul><li>The analysis is conducted automatically </li></ul><ul><ul><li>The program can be scheduled to analyze data during non-business hours in order to maximize its efficiency </li></ul></ul><ul><li>Collected information can be used to evaluate e-commerce methods, customer service and Web-site design </li></ul>

25.
4.10.1 Feature: WebTrends <ul><li>Offers free-trial versions of many of its products </li></ul><ul><li>View reports in one of many applications including Microsoft Word, Excel, HTML and text format </li></ul><ul><li>Will report its progress as it analyzes the data </li></ul><ul><li>View demographic and geographic data, technical analysis of the Web site’s effectiveness and top-referring sites </li></ul><ul><ul><li>Sites that most frequently refer visitors to your site </li></ul></ul>

26.
4.10.2 Customer Registration <ul><li>Customer registration </li></ul><ul><ul><li>Requiring visitors to fill out a form with personal information that is then used to create a profile </li></ul></ul><ul><ul><li>Recommended when it will provide a benefit to the consumer </li></ul></ul><ul><li>Require only minimum information </li></ul><ul><li>Give customers an incentive to register </li></ul><ul><ul><li>Free-trial run or a free demonstration to familiarize the user </li></ul></ul><ul><li>After customer registration, send an e-mail including customer usernames </li></ul>

27.
4.10.3 Personalization <ul><li>Personalization </li></ul><ul><ul><li>The customization of a person’s interactions with a company’s products, services, Web site and employees </li></ul></ul><ul><ul><li>Involving customers in personalization process will make them feel more comfortable and more in control of site visits </li></ul></ul><ul><ul><li>Allaire , Blaze Software , NetGenesis and Personify </li></ul></ul><ul><li>Human-to-human contact </li></ul><ul><ul><li>E-mails that confirm purchases and offer new products </li></ul></ul><ul><ul><li>Calling customers personally </li></ul></ul><ul><ul><li>A link on your site to a live customer service representative, Adeptra , ClickiCall and LivePerson </li></ul></ul>

28.
4.10.3 Personalization <ul><li>Personalization versus privacy </li></ul><ul><ul><li>Ethical implication of personalization technology </li></ul></ul><ul><ul><li>Some customers are not aware that cookies are stored on their computers </li></ul></ul><ul><ul><li>Marketers must be careful how they use the personal information gained from data research </li></ul></ul><ul><li>Filtering </li></ul><ul><ul><li>Combing through content to determine what the consumer would like to access versus what the consumer does not want to receive </li></ul></ul><ul><ul><li>N2H2 </li></ul></ul>

29.
4.11 Business-to-Business Marketing on the Web <ul><li>Emerging key to business-to-business (B2B) e-commerce is effective Customer Relationship Management (CRM) </li></ul><ul><ul><li>In the context of B2B e-commerce, CRM includes integrating systems to combine selling, buying, marketing and front-end and back-end operations performed within a company and between companies </li></ul></ul><ul><li>B2B marketing versus B2C marketing </li></ul><ul><ul><li>When you sell your product to another business, you may be selling to someone who is not the direct user of your product </li></ul></ul><ul><li>Industry marketplaces </li></ul><ul><ul><li>Construction.com , W orldwideretailexchange .com </li></ul></ul><ul><ul><li>Connect Inc , Concur Technologies and Ariba </li></ul></ul>

30.
4.12 Search Engines <ul><li>Search-engine ranking important to bring consumers to a site </li></ul><ul><ul><li>Method used by search engines to rank your Web site will determine how &quot;high&quot; your site appears in search results </li></ul></ul><ul><li>Make sure all Web pages have been published on the Web and linked correctly </li></ul><ul><li>By registering with search engines a company will increase traffic to its site </li></ul>

31.
4.12.1 META Tags <ul><li>META tag </li></ul><ul><ul><li>An HTML tag that contains information about a Web page </li></ul></ul><ul><ul><li>Does not change how Web page is displayed </li></ul></ul><ul><ul><li>Can contain description of page, keywords and title of page </li></ul></ul><ul><li>Most search engines rank your site by sending out a spider to inspect the site </li></ul><ul><ul><li>The spider reads the META tags, determines the relevance of the Web page’s information and keywords and ranks the site according to that visit’s findings </li></ul></ul><ul><li>Examine competitors’ sites to see what META tags they are using </li></ul><ul><li>Top ten results </li></ul>

32.
4.12.2 Search Engine Registration <ul><li>Submit keywords and a description of business </li></ul><ul><li>Search engine will add information to its database </li></ul><ul><li>Registering will increase the possibility that a site will make an appearance in search-engine results </li></ul><ul><li>Many search engines do not charge a fee for registering </li></ul><ul><ul><li>AltaVista , Yahoo! , Lycos , Excite , Google and Ask Jeeves </li></ul></ul><ul><ul><ul><li>Ask Jeeves uses natural-language technology that allows people to enter their search subjects in the form of questions </li></ul></ul></ul>

33.
4.13 Partnerships <ul><li>Partnering </li></ul><ul><ul><li>Forming a strategic union with another company </li></ul></ul><ul><ul><li>legal contracts written to define the relationship precisely and to protect the interests of each company </li></ul></ul><ul><ul><li>E-business partnerships typically require some level of technical conformity </li></ul></ul><ul><li>Provides consumers with complementary services and products </li></ul><ul><li>Exchange technical research or customer information </li></ul><ul><li>Outsourcing part of a company’s operations to partners can help increase operation efficiency </li></ul>

34.
4.13.1 Affiliate Programs <ul><li>Affiliate program </li></ul><ul><ul><li>An agreement between two parties that one will pay the other a commission based on a designated consumer action </li></ul></ul><ul><ul><li>Establishes new income streams for affiliates </li></ul></ul><ul><li>When a person clicks through the merchant’s site via the link on the affiliate’s site and makes a purchase, a commission on the sale is typically awarded to the affiliate </li></ul><ul><li>Creates a &quot;win-win&quot; situation </li></ul><ul><li>Some programs pay commissions to affiliates for recruiting new affiliates </li></ul>

42.
5.11 Online Banking <ul><li>Internet-only banks </li></ul><ul><ul><li>Offer convenience and lower rates to their customers </li></ul></ul><ul><ul><li>Establishing a physical presence </li></ul></ul><ul><li>The hybrid bank model </li></ul><ul><ul><li>Going online has become important for the survival and growth of small local banks </li></ul></ul><ul><ul><li>Smaller banks will usually partner with third-party service providers to make the transition to the Internet </li></ul></ul><ul><li>Glass-Steagle Act </li></ul><ul><ul><li>Prohibited financial institutions from engaging in multiple financial operations </li></ul></ul><ul><ul><li>Was repealed so now banks, brokerages and insurance companies are permitted to offer a wide range of financial services </li></ul></ul>

44.
5.11 Wells Fargo Feature <ul><li>Wells Fargo provides of online banking services </li></ul><ul><ul><li>Services are broken into three main sectors; personal finance, small business and commercial banking </li></ul></ul><ul><li>Offers customers personal banking, free bill-paying and checking-account comparisons </li></ul><ul><li>Planning to use its portal site as a financial aggregator </li></ul><ul><ul><li>allowing people to view information from all of their financial accounts in one place on the Internet </li></ul></ul><ul><li>Establishing specialized resource centers for students, retirees and those purchase cars or homes </li></ul>

45.
5.11 NetBank Feature <ul><li>Netbank is the largest bank operating solely on the Internet </li></ul><ul><li>Customers benefits </li></ul><ul><ul><li>Can open checking, savings and credit accounts </li></ul></ul><ul><ul><li>Can plan for retirement using IRAs and other investment accounts, conduct online trading, and obtain mortgage, car and business loans over the Web </li></ul></ul><ul><ul><li>Receive a line of credit, free online bill payment and presentment, ATM card and Visa credit card </li></ul></ul>

49.
6.2 Legal Issues: Privacy on the Internet <ul><li>Difficulty of applying traditional law to the Internet </li></ul><ul><li>Technology and the issue of privacy </li></ul>

50.
6.2.1 Right to Privacy <ul><li>Implicit in the First, Fourth, Ninth and Fourteenth Amendment </li></ul><ul><li>Olmstead vs. United States </li></ul><ul><ul><li>Telecommunication of alcohol sales during Prohibition era </li></ul></ul><ul><ul><li>New application of the Fourth Amendment </li></ul></ul><ul><li>Translation </li></ul><ul><ul><li>Interpreting the Constitution to protect the greater good </li></ul></ul>

52.
6.2.3 Tracking Devices <ul><li>Tracking devices </li></ul><ul><ul><li>Identifies what activities and products are most popular among consumers </li></ul></ul><ul><li>ID card </li></ul><ul><ul><li>Enables information to be sent to computer from a Web site </li></ul></ul><ul><li>Click-through advertisements </li></ul><ul><ul><li>Consumers can view the service or product by &quot;clicking&quot; on the advertisement </li></ul></ul><ul><li>Web Bugs or clear GIFs </li></ul><ul><ul><li>Embedded in an image on the screen </li></ul></ul>

53.
6.2.4 Cookies <ul><li>Cookie </li></ul><ul><ul><li>A text file stored by a Web site on an individual’s personal computer that allows a site to track the actions of its visitors </li></ul></ul><ul><ul><li>Record passwords for returning visitors </li></ul></ul><ul><ul><li>Keeps track of shopping-cart materials and register preferences </li></ul></ul><ul><ul><li>Helps businesses by allowing them to address their target market with greater accuracy </li></ul></ul><ul><li>Consumer Profile </li></ul><ul><ul><li>A direct advertising network of sites, combining information about a particular consumer </li></ul></ul>

54.
DoubleClick: Marketing with Personal Information <ul><li>Regulation of the Internet could limit a company’s efforts to buy and sell advertising </li></ul><ul><li>DoubleClick </li></ul><ul><ul><li>Advertising network of over 1,500 sites where banner advertisements for 11,000 of their clients appear </li></ul></ul><ul><li>Abacus Direct Corp </li></ul><ul><ul><li>Names, addresses, telephone numbers, age, gender, income levels and a history of purchases at retail, catalog and online stores </li></ul></ul><ul><li>Digital redlining </li></ul><ul><ul><li>Skewing of an individual’s knowledge of available products by basing the advertisements the user sees on past behavior </li></ul></ul>

55.
6.2.5 Employer and Employee <ul><li>Keystroke cops </li></ul><ul><ul><li>Registers each keystroke before it appears on the screen </li></ul></ul><ul><li>Company time and company equipment versus the rights of employees </li></ul><ul><li>Determining factors </li></ul><ul><ul><li>Reasonable expectation of privacy </li></ul></ul><ul><ul><li>Legitimate business interests </li></ul></ul><ul><li>Reasons for surveillance </li></ul><ul><ul><li>Slower transmission times </li></ul></ul><ul><ul><li>Harassment suits </li></ul></ul><ul><ul><li>Low productivity </li></ul></ul>

56.
Michael A. Smyth v. The Pillsbury Company <ul><li>Dismissed as regional operations manager </li></ul><ul><li>Questionable material in e-mail </li></ul><ul><li>Pennsylvania law </li></ul><ul><ul><li>“ an employer may discharge an employee with or without cause, at pleasure, unless restrained by some contract&quot; </li></ul></ul><ul><li>Public policy </li></ul><ul><ul><li>Reprimanding an employee called for jury duty </li></ul></ul><ul><ul><li>Denial of employment as a result of previous convictions </li></ul></ul><ul><li>Verdict awarded to Pillsbury </li></ul><ul><ul><li>No reasonable expectation of privacy </li></ul></ul><ul><ul><li>Legitimate business interests </li></ul></ul>

58.
6.2.7 Protecting Your Business: Privacy Issues <ul><li>Privacy policy </li></ul><ul><ul><li>The stated policy regarding the collection and use of visitor’s personal information </li></ul></ul><ul><li>Privacy policy services and software </li></ul><ul><ul><li>PrivacyBot .com </li></ul></ul><ul><ul><li>TRUSTe </li></ul></ul><ul><li>Core Fair Information Practices </li></ul><ul><ul><li>Consumers should be made aware that personal information will be collected </li></ul></ul><ul><ul><li>The consumer should have a say in how this information will be used </li></ul></ul><ul><ul><li>The consumer should have the ability to check the information collected to ensure that it is complete and accurate </li></ul></ul><ul><ul><li>The information collected should be secured </li></ul></ul><ul><ul><li>The Web site should be responsible for seeing that these practices are followed </li></ul></ul>

59.
6.3 Legal Issues: Other Areas of Concern <ul><li>Defamation </li></ul><ul><li>Sexually explicit speech </li></ul><ul><li>Copyright and patents </li></ul><ul><li>Trademarks </li></ul><ul><li>Unsolicited e-mail </li></ul><ul><li>First Amendment </li></ul><ul><ul><li>&quot;Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble and to petition the Government for a redress of grievances.&quot; </li></ul></ul>

60.
6.3.1 Defamation <ul><li>Defamation </li></ul><ul><li>The act of injuring another’s reputation, honor or good name through false written or oral communication </li></ul><ul><li>Libel </li></ul><ul><ul><li>Written or are spoken in a context in which they have longevity and pervasiveness that exceed slander </li></ul></ul><ul><li>Slander </li></ul><ul><ul><li>Spoken defamation </li></ul></ul><ul><li>Proving defamation </li></ul><ul><ul><li>The statement must have been published, spoken or broadcast </li></ul></ul><ul><ul><li>There must be identification of the individual(s) through name or reasonable association </li></ul></ul><ul><ul><li>The statement must, in fact, be defamatory </li></ul></ul><ul><ul><li>There must be fault </li></ul></ul><ul><ul><li>there must be evidence of injury </li></ul></ul>

62.
Cubby vs. Compuserve and Stratton Oakmont vs. Prodigy <ul><li>Cubby vs. Compuserve </li></ul><ul><ul><li>Anonymous individual used a news service hosted by Compuserve to post an allegedly defamatory statement </li></ul></ul><ul><li>Distributor vs. publisher </li></ul><ul><ul><li>A distributor cannot be held liable for a defamatory statement unless the distributor has knowledge of the content </li></ul></ul><ul><ul><li>Compuserve was a distributor of content </li></ul></ul><ul><li>Stratton Oakmont vs. Prodigy </li></ul><ul><ul><li>Claimed responsibility to remove potentially defamatory or otherwise questionable material </li></ul></ul><ul><ul><li>Prodigy served as a publisher of the content </li></ul></ul>

63.
6.3.2 Sexually Explicit Speech <ul><li>Miller v. California (1973 ) </li></ul><ul><ul><li>The Miller Test identifies the criteria used to distinguish between obscenity and pornography </li></ul></ul><ul><ul><li>A ppeal to the prurient interest, according to contemporary community standards </li></ul></ul><ul><ul><li>When taken as a whole, lack serious literary, artistic, political or scientific value </li></ul></ul><ul><li>Challenge of community standards in cyberspace </li></ul>

64.
United States vs. Thomas <ul><li>Thomas </li></ul><ul><ul><li>Internet business owner in California, owner of pornographic Web site from which merchandise could be ordered </li></ul></ul><ul><ul><li>Accessible by password </li></ul></ul><ul><ul><li>Acceptable by California community standards </li></ul></ul><ul><ul><li>Sold pornographic material to Tennessee resident (opposing community standards) </li></ul></ul><ul><li>Thomas found guilty </li></ul><ul><li>Non-content related means </li></ul><ul><ul><li>Effort to control the audience rather than controlling the material </li></ul></ul>

65.
6.3.3 Children and the Internet <ul><li>Accessibility to information </li></ul><ul><li>Communications Decency Act of 1996 (CDA) and Children’s Online Protection Act of 1998 (COPA) </li></ul><ul><ul><li>Designed to restrict pornography on the Internet, particularly in the interest of children </li></ul></ul><ul><ul><li>Overbroad </li></ul></ul><ul><ul><li>“ Patently offensive,” “indecent” and “harmful to minors” </li></ul></ul><ul><li>Chilling effect </li></ul><ul><ul><li>Limiting speech to avoid a lawsuit </li></ul></ul><ul><li>Children’s Online Privacy Protection Act of 2000 (COPPA) </li></ul><ul><ul><li>Prohibits Web sites from collecting personal information from children under the age of 13 </li></ul></ul>

67.
6.3.5 Intellectual Property: Patents and Copyright <ul><li>Copyright </li></ul><ul><ul><li>The protection given to the author of an original piece, including “literary, dramatic, musical, artistic and certain other intellectual works” </li></ul></ul><ul><ul><li>Whether the work has been published or not </li></ul></ul><ul><ul><li>Protects only the expression or form of an idea and not the idea itself </li></ul></ul><ul><ul><li>Provides incentive to the creators of original material </li></ul></ul><ul><ul><li>Guaranteed for the life of the author plus seventy years </li></ul></ul>

68.
MP3: Raising Copyright Issues <ul><li>MPEG-1 Audio Layer 3 ( MP3) </li></ul><ul><ul><li>A compression method used to substantially reduce the size of audio files with no significant reduction in sound quality </li></ul></ul><ul><ul><li>Facilitates the exchange of audio files over the Internet </li></ul></ul><ul><li>Napster </li></ul><ul><ul><li>Uses central servers to help users locate MP3 files stored on other Napster users’ hard drives </li></ul></ul><ul><ul><li>Napster members are then able to download these files to their own hard drives </li></ul></ul><ul><ul><li>The files are not stored on Napster’s servers </li></ul></ul><ul><ul><li>Napster.com suggests it cannot control the use (or misuse) of those files, and therefore it is not violating copyright laws </li></ul></ul>

69.
MP3: Raising Copyright Issues <ul><li>MP3.com </li></ul><ul><ul><li>Instant Listening TM service allows users to immediately begin listening to music from CDs they have purchased online </li></ul></ul><ul><ul><li>When a user purchases a CD from a select online retailer, all of the songs from the purchased CDs are added to the user’s account on MyMP3.com </li></ul></ul><ul><ul><li>MP3.com did not have the rights to the music </li></ul></ul>

70.
United States vs. Lamacchia <ul><li>Changed the face of copyright protection (1994) </li></ul><ul><li>Posting of copyrighted material </li></ul><ul><li>Not guilty under the Copyright Act of 1976 </li></ul><ul><ul><li>The violation must have been conducted &quot;willfully and for purposes of commercial advantage or private financial gain” </li></ul></ul><ul><li>LaMachhia did not profit from the copyright violations </li></ul><ul><li>LaMacchia was not convicted for his actions </li></ul>

71.
6.3.5 Intellectual Property: Patents and Copyrights <ul><li>Digital Millennium Copyright Act of 1998 (DMCA) </li></ul><ul><ul><li>Represents the rights of creative bodies to protect their work as well as the rights of educators and resource providers to receive access to this work </li></ul></ul><ul><ul><li>Makes it illegal to delete or otherwise alter the identifying information of the copyright owner. </li></ul></ul><ul><ul><li>Prevents the circumvention of protection mechanisms and/or the sale of such circumvention mechanisms </li></ul></ul><ul><ul><li>Protects the fair use of copyrighted material </li></ul></ul>

72.
6.3.5 Intellectual Property: Patents and Copyright <ul><li>Fair use </li></ul><ul><ul><li>The use of a copyrighted work for education, research, criticism, etc. </li></ul></ul><ul><ul><li>The purpose of the copyrighted work is examined </li></ul></ul><ul><ul><li>The nature of the copyrighted work is taken into account </li></ul></ul><ul><ul><li>The amount of the material that has been reproduced is reviewed </li></ul></ul><ul><ul><li>The effect is taken into consideration </li></ul></ul>

73.
6.3.5 Intellectual Property: Patents and Copyright <ul><li>Patent </li></ul><ul><ul><li>Grants the creator sole rights to the use of a new discovery </li></ul></ul><ul><ul><li>Protection for 20 years </li></ul></ul><ul><li>Opposing the length of a patent </li></ul><ul><ul><li>Does not foster the creation of new material </li></ul></ul><ul><li>Includes “methods of doing business” since 1998 </li></ul><ul><ul><li>Idea must be new and not obvious to a skilled person </li></ul></ul><ul><li>Amazon’s 1-Click patent </li></ul><ul><ul><li>September, 1999 </li></ul></ul><ul><ul><li>Huge advantage over competitors, as 65% of shopping carts are abandoned before purchase is complete </li></ul></ul><ul><ul><li>Refused barnesandnoble.com Express Lane </li></ul></ul>

74.
6.3.6 Trademark and Domain Name Registration <ul><li>Parasite </li></ul><ul><ul><li>Selects a domain name based on common typos made when entering a popular domain name </li></ul></ul><ul><li>Cybersquatter </li></ul><ul><ul><li>Buys an assortment of domain names that are obvious representations of a brick-and-mortar company </li></ul></ul><ul><li>Anticybersquatting Consumer Protection Act of 1999 (ACPA) </li></ul><ul><ul><li>Protects traditional trademarking in cyberspace </li></ul></ul><ul><ul><li>Protects trademarks belonging to a person or entity other than the person or entity registering or using the domain name </li></ul></ul><ul><ul><li>Persons registering domain names are protected from prosecution if they have a legitimate claim to the domain name </li></ul></ul><ul><ul><li>Domain names cannot be registered with the intention of resale to the rightful trademark owner </li></ul></ul>

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6.3.7 Unsolicited Commercial E-mail (Spam) <ul><li>Cost is primarily incurred by the receiver and the ISP </li></ul><ul><li>Organizations distributing spam </li></ul><ul><ul><li>Maintain anonymity and receivers cannot request to be taken off the organization’s mailing list </li></ul></ul><ul><ul><li>Present themselves as a legitimate company and damage the legitimate companies reputation </li></ul></ul><ul><li>Unsolicited Electronic Mail Act </li></ul><ul><ul><li>Mandates that the nature of the e-mail be made clear </li></ul></ul><ul><ul><li>In effect, this would require online marketers to know the policy of every ISP they encounter on the Web </li></ul></ul>

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6.3.8 Online Auctions <ul><li>Question of government regulation </li></ul><ul><li>International regulation of auctions </li></ul><ul><li>Copyright infringement and auction aggregation services </li></ul><ul><li>The Collections of Information Antipiracy Act (CIAA) </li></ul><ul><ul><li>Makes it easier to prosecute any group which takes listings from one organization and, in doing so, harms the original business </li></ul></ul><ul><li>Shill bidding </li></ul><ul><ul><li>Sellers bid for their own items in order to increase the bid price </li></ul></ul>

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6.4 Social Issues: Online Communities <ul><li>The Web allows larger and more diverse groups to communicate, share information and exchange opinions </li></ul><ul><li>Web sites are being created to accommodate a variety of individuals with different backgrounds, interests and ideas </li></ul>

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6.4.3 Disabilities and the Web <ul><li>Enables disabled individuals to work in many new fields </li></ul><ul><ul><li>Voice activation, visual enhancers and auditory aids </li></ul></ul><ul><li>Americans with Disabilities Act (ADA) </li></ul><ul><ul><li>Protects the employment rights of Americans with disabilities </li></ul></ul><ul><li>Legal requirements of meeting the needs of people with disabilities </li></ul><ul><ul><li>Sites that are heavily laden with graphic images might have to simplify (or modify) their appearance </li></ul></ul>

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6.5 Global Issues <ul><li>The Internet poses challenges to a world comprised of different cultures, attitudes, languages, codes of conduct and government authorities </li></ul><ul><li>Various reactions to privacy, personalization and copyright </li></ul><ul><li>Felix Somm </li></ul><ul><ul><li>Held accountable under German law for providing German subscribers access to sexually explicit material </li></ul></ul><ul><ul><li>Compuserve was an internationally operating ISP, material posted in the United States was also accessible to Compuserve’s international members </li></ul></ul>

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6.5 Global Issues <ul><li>European Union Directive on Data Protection </li></ul><ul><ul><li>Agreement among its members on the regulations that apply to information exchange </li></ul></ul><ul><ul><li>Mandates that personal information be kept current and used in a lawful manner for its designated purpose </li></ul></ul><ul><ul><li>Compiled list of American Web sites that meet the criteria designated by the Directive </li></ul></ul><ul><ul><li>In the case of a violation of the directive, the case will be tried in the United States </li></ul></ul>

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6.6 Internet Taxation <ul><li>The opposing arguments </li></ul><ul><ul><li>Permanent ban on Internet taxation </li></ul></ul><ul><ul><li>Fair taxation of Internet sales </li></ul></ul><ul><li>Taxation methods </li></ul><ul><ul><li>If both a vendor and a consumer are located in the same state </li></ul></ul><ul><ul><li>If the vendor and the consumer are not located in the same state, then the sale is subject to a use tax </li></ul></ul><ul><ul><li>If the vendor has a physical presence, or nexus, then it is required to collect the tax; otherwise the vendor must assess the tax and pay it directly to the state </li></ul></ul>

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6.6 Internet Taxation <ul><li>Problems with Internet taxation </li></ul><ul><ul><li>The definition of physical presence ( location of the ISP, the location of the server or the location of the home page ) </li></ul></ul><ul><ul><li>States vary according to what transactions are subject to taxation </li></ul></ul><ul><ul><li>Sales tax revenues are the largest single source of a state’s revenue and are used to fund government-subsidized programs, including the fire department, the police and the public education systems </li></ul></ul><ul><ul><li>State and local governments further argue that removing taxation methods from their jurisdiction infringes upon state sovereignty, an element of the checks-and-balances system maintained by the United States Constitution </li></ul></ul>

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6.6 Internet Taxation <ul><li>Problems with Internet taxation </li></ul><ul><ul><li>To appropriately meet the taxation requirements of all parties in online transactions, e-businesses would be required to know and understand all these methods </li></ul></ul><ul><li>Internet Tax Commission </li></ul><ul><ul><li>Reviewed the issue of Internet taxation </li></ul></ul><ul><ul><li>Revision of state and local taxes to make taxing a feasible process for Internet businesses </li></ul></ul><ul><ul><li>Establish clearer definitions on the meaning of &quot;physical presence“ </li></ul></ul><ul><ul><li>Define universal taxation exemptions </li></ul></ul>

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7.2 Ancient Ciphers to Modern Cryptosystems <ul><li>Cryptography </li></ul><ul><ul><li>Used to secure information, by encrypting it </li></ul></ul><ul><ul><li>Transforms data by using a key </li></ul></ul><ul><ul><ul><li>Key is a string of digits that acts as a password and makes the data incomprehensible to those without it </li></ul></ul></ul><ul><ul><li>Plaintext – unencrypted data </li></ul></ul><ul><ul><li>Cipher-text – encrypted data </li></ul></ul><ul><ul><li>Cipher of cryptosystem – technique for encrypting messages </li></ul></ul><ul><li>Ciphers </li></ul><ul><ul><li>Substitution cipher </li></ul></ul><ul><ul><ul><li>Every occurrence of a given letter is replaced by a different letter </li></ul></ul></ul>

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7.2 Ancient Ciphers to Modern Cryptosystems <ul><ul><li>Transposition cipher </li></ul></ul><ul><ul><ul><li>Shifts the ordering of letters </li></ul></ul></ul><ul><ul><li>Modern cryptosystems </li></ul></ul><ul><ul><ul><li>Digital, based on bits not the alphabet </li></ul></ul></ul><ul><ul><ul><li>Key length – length of string used to encrypt and decrypt </li></ul></ul></ul>

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7.4 Public Key Cryptography <ul><li>Public key cryptography </li></ul><ul><ul><li>Asymmetric – two inversely related keys </li></ul></ul><ul><ul><ul><li>Private key </li></ul></ul></ul><ul><ul><ul><li>Public key </li></ul></ul></ul><ul><ul><li>If public key encrypts only private can decrypt and vice versa </li></ul></ul><ul><ul><li>Each party has both a public and a private key </li></ul></ul><ul><ul><li>Either the public key or the private key can be used to encrypt a message </li></ul></ul><ul><ul><li>Encrypted with public key and private key </li></ul></ul><ul><ul><ul><li>Proves identity while maintaining security </li></ul></ul></ul><ul><li>RSA public key algorithm www.rsasecurity.com </li></ul>

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7.6 Key Management <ul><li>Key management </li></ul><ul><ul><li>Handling and security of private keys </li></ul></ul><ul><ul><li>Key-generation is the process by which keys are created </li></ul></ul><ul><ul><ul><li>Must be truly random </li></ul></ul></ul>

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7.11 Security Attacks <ul><li>Types of security attacks </li></ul><ul><ul><li>Denial of service attacks </li></ul></ul><ul><ul><ul><li>Use a network of computers to overload servers and cause them to crash or become unavailable to legitimate users </li></ul></ul></ul><ul><ul><ul><li>Flood servers with data packets </li></ul></ul></ul><ul><ul><ul><li>Alter routing tables which direct data from one computer to another </li></ul></ul></ul><ul><ul><ul><li>Distributed denial of service attack comes from multiple computers </li></ul></ul></ul><ul><ul><li>Viruses </li></ul></ul><ul><ul><ul><li>Computer programs that corrupt or delete files </li></ul></ul></ul><ul><ul><ul><li>Sent as attachments or embedded in other files </li></ul></ul></ul><ul><ul><li>Worm </li></ul></ul><ul><ul><ul><li>Can spread itself over a network, doesn’t need to be sent </li></ul></ul></ul>

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7.11 Security Attacks <ul><li>Types of viruses </li></ul><ul><ul><li>Transient virus </li></ul></ul><ul><ul><ul><li>Attaches itself to specific program </li></ul></ul></ul><ul><ul><ul><li>Is run every time the program is run </li></ul></ul></ul><ul><ul><li>Resident virus </li></ul></ul><ul><ul><ul><li>Once loaded operates for duration of computer’s use </li></ul></ul></ul><ul><ul><li>Logic bomb </li></ul></ul><ul><ul><ul><li>Triggers when a given condition is met, such as clock on computer matching a specified time </li></ul></ul></ul><ul><ul><li>Trojan horse </li></ul></ul><ul><ul><ul><li>Malicious program that hides within a friendly program </li></ul></ul></ul><ul><li>Web defacing </li></ul><ul><ul><li>Hackers illegally change the content of a Web site </li></ul></ul>

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7.12.1 Firewalls <ul><li>Firewall </li></ul><ul><ul><li>Protects local area network (LAN) from outside intruders </li></ul></ul><ul><ul><li>Safey barrier for data flowing in and out </li></ul></ul><ul><ul><li>Prohibit all data not allowed or permit all data not prohibited </li></ul></ul><ul><li>Types of firewalls </li></ul><ul><ul><li>Packet-filtering firewalls </li></ul></ul><ul><ul><ul><li>Rejects all data with local addresses from outside </li></ul></ul></ul><ul><ul><ul><li>Examine only source not content </li></ul></ul></ul><ul><ul><li>Application level firewalls </li></ul></ul><ul><ul><ul><li>Attempt to scan data </li></ul></ul></ul>

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7.12.2 Kerberos <ul><li>Kerberos </li></ul><ul><ul><li>Uses symmetric secret-key cryptography to authenticate users in a network </li></ul></ul><ul><ul><li>Authenticates who a client computer is and if he has the right’s to access specific parts of the network </li></ul></ul>

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8.3.2 Communications Media <ul><li>Communications medium </li></ul><ul><ul><li>Hardware that connects digital equipment together </li></ul></ul><ul><ul><li>Bandwidth </li></ul></ul><ul><ul><ul><li>Measure of how much data can be transferred </li></ul></ul></ul><ul><ul><ul><li>High bandwidth more data </li></ul></ul></ul><ul><ul><ul><li>Measured in bits per second (bps), kilobits per second (Kbps) or megabits per second (Mbps) </li></ul></ul></ul><ul><ul><li>Copper wire </li></ul></ul><ul><ul><ul><li>Widely used, widely available, reliable and easy to install </li></ul></ul></ul><ul><ul><ul><li>Inadequate for high speed data transmission </li></ul></ul></ul><ul><ul><li>Fiber-optic cable </li></ul></ul><ul><ul><ul><li>Thinner and lighter than copper, higher bandwidth </li></ul></ul></ul><ul><ul><ul><li>Modulation </li></ul></ul></ul><ul><ul><ul><ul><li>Transfer data as light then demodulate </li></ul></ul></ul></ul>